Why India Inc is cynical of govt, asks FM

Finance Minister Arun Jaitley on Saturday asked Corporate India why local businessmen are more critical of the Modi government when compared to foreign investors.

Talking to a select group of business leaders in a closed-door meeting here, Jaitley said Indian companies are less optimistic of India as compared to their foreign counterparts who have announced fresh investments. He also exhorted Indian companies to resume investing to take advantage of the several initiatives taken by the Modi government to make business easier.

Jaitley's comments came in the backdrop of falling investments by Indian companies. CEOs, who attended the meeting, told the FM that many of their plants are running at low capacity due to low consumer spending. Till the capacity reaches its optimum level, fresh investments cannot be made, they told the FM.

One of India Inc's top leaders also asked the FM about the growing intolerance in the country.

Jaitley said few corporate leaders are not repaying loans to the banks but their promoters are leading a luxurious life.

Jaitley said investments by public sector companies have increased in the last few quarters and the trend will continue in the coming months. Jaitley talked about the  falling interest rates, increased FDI in many sectors and ease of doing business. The meeting was attended by KKR India head Sanjay Nayyar, Chairman of RPG group Harsh Goenka, real estate tycoon Niranjan Hiranandani and Nimesh Kampani of JM Financial.